The Not-So-Small Business Administration

Should businesses with 1,500 employees still be considered 'small'?

By

Jeff Stibel

July 2, 2014 7:03 p.m. ET

Last month the Small Business Administration updated the criteria it uses to determine what qualifies as a "small business" for the first time since 2008. The formula varies by industry, sometimes calculated by number of employees, other times by annual revenues or total assets. Thanks to the change, approximately 8,500 more companies (some with more than 1,000 employees) will now be eligible for the designation—and the federal assistance that goes with it.